Going-Concern Assumption and Disclaimer Opinion: The Italian Case

Abstract

The going-concern (GC) assumption is a
fundamental principle in the preparation of financial statements
in many countries. For this reason an evaluation on the
capability of the entity to continue in business for the foreseeable
future is a central element in the audit process. After introducing
the influence that GC assumption plays on the audit opinion, this
paper aims to verify what has happened to the Italian listed
companies after receiving a disclaimer opinion for inappropriate
evidence regarding the use of the GC assumption.